Working at home is a dream come true for many. However, this dream comes with a few headaches, such as filing taxes every year. Whether you file under a business name or use a Schedule C, there are a few mistakes that are common when doing them yourself.
Not Claiming All Freelance Income
If you work on a freelance basis, you may have several companies that you work for. The general rule is that if you make more than $600, it must be declared. The trick to that, and the most common mistake is that it is not per company. For example, if you make over $600 as a freelance writer, you have to claim each and every income source.
Not Writing Off All Deductions Available
There are many different deductions. Many people that work from home don’t use all that is available. For example, if your work is web based, you can write off a portion of the internet bill. You can also write off your office supplies. You can also write off your dedicated phone line, your new desk, and even your pens and pencils. Don’t forget your advertising expenses!
Not Hiring a Certified Professional
There are changes that are made to the tax laws made all the time. The best bet is to hire a professional accounting firm miami, or a certified tax preparation miami specialist to take care of the taxes. Not doing so can mean not getting the full amount of the refund that you are due. On the other hand, you may be opening up your chances of being audited. Neither of those are good scenarios and you can end up losing valuable time and money.
If you have specific questions when it comes to your taxes, you can simply click here for more information. A certified tax professional may not cost as much as you may imagine that they do. Paying a professional can certainly be less expensive and definitely less stressful than being under IRS scrutiny while going through an audit. A certified professional has years of experience. You would not trust a mechanic to do your plastic surgery, would you?